Boost for Leeds factory as bus maker wins another big contract

Go Ahead will use the midibuses, which are a cross between the group’s full-size single-deck Tempo and the smaller Solo minibus, for its Quaylink services that connect major bus, Metro and rail stations with attractions on both banks of the River Tyne.

Optare’s chief executive Jim Sumner said: “We are delighted to have secured this repeat business on what is an extremely high-profile operation.”

The group also said that chief operating officer Glenn Saint will be extending his responsibilities to include relocation of the Leeds factory and deputising for the chief executive.

As a result, Mr Saint will step down as a board member, although he will continue as a director of the group’s operating companies.

“Glenn’s expanded role will be extremely important to the business during a period of significant growth while relocating to a new factory,” said Mr Sumner.

Optare has raised £7.4m through a share issue to fund the relocation of its Leeds factory. The group placed 370m new shares, at 2p each, with institutional and other investors to fund the relocation of its Manston Lane site.

Some of the funds will also be used for working capital and to reduce its debt.

In January, the group outlined plans to move its Leeds site to a “new local facility” because it does not expect the current site’s lease to be extended beyond the end of 2011.

“This new facility will provide increased capacity and improved productivity because of a more optimal plant layout,” said the group at the time.

Last week, Optare announced that it has won a £3.6m contract to supply Rotala with 20 buses, including 15 Versa Hybrid buses supported by the Government’s Green Bus Fund.

All the buses are to a high specification, including Wi-Fi connectivity, ACIS Real-Time information and full CCTV camera systems and are for delivery in 2011.

At the end of February, Optare won a £2m contract to supply Arriva with 10 of its Solo Hybrid buses for export to Malta.

Arriva has recently won the contract to run the bus services in Malta and Gozo by Transport Malta and the Maltese government.

Mr Sumner said, “This is further great news for Optare as the order book continues to strengthen and its strategy of growing business in green bus and export markets bears fruit.”

In January, Optare said it was looking forward to increasing its order book and output in 2011 after suffering December’s heavy snowfall. The group has agreed a £750,000 loan facility with a major shareholder.

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